What Are Consumables Cover in Health Insurance?

While buying health insurance in India, most people tend to limit their coverage to hospital expenses, such as surgeries, hospital accommodation, and doctor consultations. But a large part of medical bills tends to be made up of small, high-volume items, which are known, if a bit imprecisely, as “consumables.” They are disposable items used in treatment, hence the name consumables. These are generally low cost, but when used in large numbers can add up to significant expenses.

This has particularly been seen post pandemic when the fear of contamination drove such precautionary measures. The measures have been retained both due to customers becoming more aware of the chances of infections, but equally it is being driven by hospitals, seeing consumables as a nice way to increase their revenues. As the share of consumables started rising in overall costs, the insurance industry responded by tweaking their products to offer the customers an insurance against this new category of expense.

If you want to avoid surprise out-of-pocket costs, it is important to know what consumables are covered in your health insurance policy. And that is exactly what we will be doing in this article, so dive on ahead!

What is consumable in health insurance?

‘Medical consumable’ refers to supplies or devices that are disposable and used during treatment. These range from masks, gloves and syringes to PPE kits, cotton, needles, and surgical tapes. IRDAI in 2016 had come out with a list of 199 non-admissible consumables. The reason for keeping consumables out was to keep the overall cost of treatment and claim size under control, with the objective of keeping health insurance premiums reasonable. However, the regulator, recognizing the increasing costs, also gave insurers the flexibility to incorporate or exclude some or all of them from their programs.

The increasing price of consumable items

Consumables used to make up around 3-5 percent of the medical bill, prior to the COVID-19 outbreak. After the pandemic, this percentage is much higher, with consumables making up about 10-20% of a hospital bill. The rising share of consumables in hospital bills in India can be attributed to a combination of medical, operational, and regulatory factors. Here’s a detailed look at the key reasons:

• Post-COVID Hygiene and Safety Protocols
• Shift Toward Disposable Over Reusable Medical Supplies
• Bundled Charges in Hospital Billing
• Increased Use of Advanced Technology
• Lack of Standardization in Pricing
• Insurance Exclusion of Consumables
• Increase in Day-Care Procedures and Short Stays
• Lack of Awareness Among Patients

Why are consumables not a standard part of coverage?

Typically, health insurance does not cover consumables because they are used once and then disposed of. Masking them may result in inflated hospital bills and larger claims. The types, pricing, and availability of consumables are also not consistent across hospitals.

Introducing consumables cover?

To ease the monetary pressure on consumables, several health insurance providers provide Consumables Cover as a rider over and above the base plan. Policyholders can come protected from the costs that are incurred for consumables if they pay an additional premium amount for it. This can provide a valuable cushion against extended hospital stays that the couple would have needed to pay for themselves.

What’s included in a typical consumable cover?

Consumables Cover usually consists of following heads:

• Surgical Instruments: Gloves, Mask, Cotton, Needles, Syringes, Razors, Gowns, Surgical Tape, Slings, Braces, Splints, Collars, and so on.
• Room charges: Room rent and charges for amenities offered in the room such as a/c, telephone, T.V, attendant fee, IV injections, luxury tax.
• Housekeeping Items: Everyday useful items such as toothbrushes, toothpaste, tissue paper, soaps, shampoo, slippers, sanitary pads, combs, diapers, carry bags and mineral water.
• Administrative Services: Documentation and paperwork expenses such as birth/death certificates, admission kits, visitors’ passes, daily charts, medical history keeping up and discharge procedures.

Benefits of Consumables Cover

• No Financial Worries: The product pays to meet all your consumable expenses, thereby ensuring that there are no overheads on your head during hospitalisation.
• Peace of Mind By having consumables covered, patients can concentrate on recovery, not worry about the cost.

How to opt for consumables cover

Consumables Cover is generally offered as an add-on or rider to a regular health insurance plan. The incremental premium for such a cover is quite low, generally about ₹500 to ₹1,000 a year. Some insurance providers include Consumables Cover as part of their policies.

Conclusion

Although single-use consumables may seem like pittances, the expense can add up during a hospital stay. Adding Consumables Cover to your health insurance will give you the complete peace you need. Check your policy or have a look at adding this cover to your policy, as there are numerous hidden medical costs you may have to cover.